Sader Law Firm Blog - Kansas City Bankruptcy Attorney Blog

How to Prepare for a Recession

Posted on September 17, 2019 by The Sader Law Firm
Bankruptcy attorney in Kansas City

It has been roughly a decade since the end of the most recent recession in the United States, as determined by the National Bureau of Economic Research. Currently, consumer income and spending remain on solid ground with personal and disposable income continuing to grow on a slow upward trend. Still, the threat of a recession looms on the minds of many consumers. Current political issues contribute to their concerns about the economy. In the event of recession, are you prepared to financially withstand the impact? Should You Prepare for the Potential Risk of a Recession? This is the question that many are asking as they assess their financial futures. During a recession, it is important to minimize any potential financial risks. However, doing this can also have an impact on your current investment strategy, and potentially reduce financial growth. A fine balance exists between overreaction and preparing for the seemingly…
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Lawmakers Sponsoring Legislation to Ease Student Loan Bankruptcy Process

Posted on September 10, 2019 by The Sader Law Firm
income driven repayment plan

Recent Federal Reserve data shows that student loans have exceeded $1.4 trillion. As one of the most common types of debt held by Americans, it is also a source of serious financial pain for many borrowers. Some recent reports suggest default rates could hit 40 percent by 2023.  Student loans are more difficult to discharge in bankruptcy. It is not impossible, but there are additional requirements that you must meet before you can discharge this type of debt. Each bankruptcy district has different tests for showing “undue hardship”, which is necessary to receive a discharge. Depending on where you file your case, you could have to show undue hardship through the Brunner test, a modified Brunner test or the totality of circumstances test. The totality of circumstances test, which is used in Missouri bankruptcy courts, is generally more lenient on how it defines undue hardship.  Members of Congress are attempting…
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Are There Non-Dischargeable Debts in Bankruptcy?

Posted on August 30, 2019 by The Sader Law Firm
Kansas City Bankruptcy Attorneys

Bankruptcy is an extremely helpful option for people who are suffering from the effects of difficult financial situations and creditor collection actions. By filing for Chapter 7 or Chapter 13 bankruptcy, you can discharge debts while protecting your most important assets.  Chapter 13 bankruptcy sets up a payment plan to repay your debts while allowing you to keep your property. With Chapter 7 bankruptcy, you discharge your debts and use exemptions to protect your assets.  However, there are certain types of debts that are non-dischargeable. If you have non-dischargeable debts, then you should still consider filing for bankruptcy. By discharging your other debts, you can free up funds to pay back your non-dischargeable debts.  Child Support,  Alimony and Property Settlements in Bankruptcy You cannot discharge past due child support or alimony. This means that you cannot discharge family/domestic support obligations in Chapter 7, Chapter 13 or Chapter 11 bankruptcy. There…
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